Buy, sell or hold? That will be the question on the minds of many investors as the markets open Monday following last week's stock market sell-off.

That's when Canada's benchmark stock index plunged 961 points or seven per cent, wiping out a year's worth of gains in just four days.

The losses were tied to those in the United States, whose economy has been hit with a housing crisis, rising unemployment and falling consumer spending.

Even though the market indicators are better north of the border, Patricia Croft, chief economist at Phillips, Hager & North Investment Management Ltd., said the Canadian economy is tied to the U.S. economy.

"In the words of one analyst, 'Like maple syrup to pancakes,'" she said. "Where they go we follow, maybe with a lag of a quarter or two."

Some investors are pinning their hopes on two upcoming announcements from U.S. and Canadian central bank authorities to kickstart the stock markets.

The Bank of Canada is expected to lower its overnight lending rate 25 basis points to four per cent on Tuesday. Economists are forecasting even deeper cuts to the federal funds rate by the U.S. Federal Reserve Board at the end of the month of 50 basis points to 3.75 per cent.

But such actions will take some time to take effect.

"If you cut rates today, you probably won't see benefits in the economy for six to 12 months," Croft said.